US and China reportedly discuss cutting tariffs on $30 billion of goods to extend trade truce

Summary

China and the U.S. are negotiating reciprocal tariff cuts on approximately $30 billion of goods, focusing on energy, agriculture, and manufacturing raw materials etnet. The goal is to extend a one-year trade truce, with U.S. Treasury Secretary Bessent and Chinese Vice Premier He Lifeng expected to meet this weekend . This marks the first substantive rollback of Section 301 tariffs toward Most Favored Nation (MFN) levels since the trade war began .

Impact Analysis

So basically, we’re seeing the first real ‘reverse gear’ in the trade war. While $30 billion sounds significant, let’s be real—it’s only about 8% of the total $370 billion in U.S. tariffs . The market might over-excitedly price in a ‘thaw,’ but the interesting part isn’t the scale; it’s the selection. By focusing on ‘non-strategic’ goods like energy, ag, and raw materials etnet, both sides are surgically lowering input costs without touching the high-stakes tech or EV battlegrounds.

I’d read this as a pragmatic ‘truce extension’ driven by the looming November 10 deadline . The real tell will be the specific list expected around September 24 . If it lands as described, it’s a clear win for manufacturing margins and agricultural exporters. However, don’t mistake this for a structural shift—it’s a tactical breather to stabilize supply chains. The trade here isn’t ‘long China’ or ‘long US’ broadly; it’s a play on the specific raw materials and non-critical components that get the MFN rate treatment .